Barclays 2005 Annual Report Download - page 229

59 Liquidity risk
The Group’s objectives and policies in managing the liquidity risks that arise in connection with the use of financial instruments are set out in
Note 54 under the heading ‘Liquidity Risk Management’.
The following table provides detail on the contractual maturity of all financial instruments and other assets and liabilities:
Over three Over Over Over Over
months six months one year three years five years
Not more but not but not but not but not but not
On than three more than more than more than more than more than Over
demand months six months one year three years five years ten years ten years Total
At 31st December 2005 £m £m £m £m £m £m £m £m £m
Assets
Cash and balances with central banks 3,793 113 – –––––3,906
Items in course of collection from
other banks 1,526 375 – –––––1,901
Trading portfolio assets 610 21,430 9,401 14,328 27,077 17,775 22,906 42,196 155,723
Financial assets designated
at fair value:
– held on own account 1,436 484 103 555 2,157 822 836 6,511 12,904
– held in respect of linked liabilities
to customers under investment
contracts 62,636 1,039 75 546 1,841 939 3,261 12,856 83,193
Derivative financial instruments 1,839 16,254 6,924 8,479 29,086 20,246 29,618 24,377 136,823
Loans and advances to banks 3,929 15,917 2,000 3,175 1,844 787 1,048 2,405 31,105
Loans and advances to customers 33,999 43,884 11,407 21,340 32,713 25,476 30,030 70,047 268,896
Available for sale financial
investments 476 3,775 2,765 7,744 19,449 9,488 4,798 5,002 53,497
Reverse repurchase agreements
and cash collateral on securities
borrowed 690 149,276 3,923 4,028 1,537 888 26 30 160,398
Other assets 42 1,124 1,136 2,289 1,157 104 59 10,100 16,011
Total assets 110,976 253,671 37,734 62,484 116,861 76,525 92,582 173,524 924,357
Liabilities
Deposits from banks 13,924 54,620 2,488 1,168 442 725 1,288 472 75,127
Items in the course of collection due
to other banks 2,238 103 – –––––2,341
Customer accounts 144,015 72,590 9,282 2,606 2,981 1,594 2,223 3,393 238,684
Trading portfolio liabilities 6 1,580 1,448 4,047 18,424 10,172 17,293 18,594 71,564
Financial liabilities designated
at fair value:
– held on own account 6 6,692 3,186 7,293 3,582 3,718 5,882 3,026 33,385
Liabilities to customers under
investment contracts 79,985 – – 83 191 213 1,518 3,211 85,201
Derivative financial instruments 1,512 17,238 6,594 8,436 29,740 21,359 29,360 23,732 137,971
Debt securities in issue 894 54,112 13,985 8,777 8,795 2,876 307 13,582 103,328
Repurchase agreements and
cash collateral on securities lent 275 104,063 7,217 3,208 431 – – 5,984 121,178
Subordinated liabilities 2 185 2 74 28 721 4,672 6,779 12,463
Other liabilities 434 3,414 3,455 7,959 3,256 81 59 27 18,685
Total liabilities 243,291 314,597 47,657 43,651 67,870 41,459 62,602 78,800 899,927
Cumulative liquidity gap (132,315) (193,241) (203,164) (184,331) (135,340) (100,274) (70,294) 24,430 24,430
Expected maturity dates do not differ significantly from the contract dates, except for:
– Trading Portfolio Assets and Liabilities and derivative financial instruments which may not be held to maturity as part of the Group’s trading
strategies. For these instruments, which are mostly held by Barclays Capital, liquidity and repricing risk is managed through the Daily Value at
Risk (DVaR) methodology.
– Retail deposits which are repayable on demand or at short notice form a stable base for the Group’s operations and liquidity needs because of
the broad base of customers – numerically and by depositor type.
– Financial assets designated at fair value held in respect of linked liabilities are managed with the associated liabilities.
Barclays PLC
Annual Report 2005 227
3.5